Counselor® PromoGram®
Volume 650 / October 6, 2009
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NEWS STORIES
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Management Shakeup At Boundless Network
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Jetline Announces South Carolina Expansion
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Tony Robbins Named Keynote Speaker For ASI San Diego
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Tuesday Morning Radio Show Live On The Air
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SBA Gradually Backing More Loans
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The Joe Show: New Products For 2010
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Noteworthy Acquires Krieger-Ragsdale’s Memo Book Division
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Internet Ad Revenues Down Slightly
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Outlook 2010: Free Webcast Tomorrow
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New Courses Available on ASI Education's Online Learning Center
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ASICentral: New Poll Question
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In The News
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People On The Move
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SHARE PROMOGRAM LinkedInspacer Facebook Twitter

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ASI NEWS
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Select Catalog Available First 2010 catalog released! Filled with worry-free, four star suppliers as rated by distributors in ESP Online.
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Tony Robbins appearing at ASI Show San Diego.

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NEWS

Management Shakeup At Boundless Network
Counselor has learned that Boundless Network (asi/143717) CEO Sherman Atkinson and Senior Vice President of Sales Tom Rizzi are no longer at the Austin, TX-based company. In an exclusive interview with Counselor this afternoon, Boundless President Jason Black said the changes were made as part of a shift in strategy for the upcoming year. Black informed Boundless’ employees about the changes today.

"Historically, we’ve done nine to 10 acquisitions over 24 months," Black said. "In this economy, acquiring companies with a cash component is not a strategy we want to have in 2010. I brought in Tom to take the company from 50 to 100 million [dollars] and Sherman to identify the acquisitions to get us to 100. With the shift in strategy, we don’t necessarily need these roles within the company."
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A former COO of buy.com and Intermix media, Atkinson joined Boundless in May. Rizzi previously held positions at Renaissance Mark, Graphic Packaging International and WorkflowOne (asi/333647). Without Atkinson in place, Black will resume his post as CEO and continue his role as president. "I’m extremely excited about the change," Black says. "We’ve grown so fast that we haven’t had a chance to fine tune and tighten up our organization for the next run."

Additionally, Black says that the management and strategy changes are not due to any financial distress. "Our cash flow is fine," he says. "I feel we have the strongest balance sheet in the industry and we’ve got the best capital partners in the industry. This is not a failure."

One of the most active deal-makers in the industry, Boundless has acquired 13 companies in just the past two years. Since its founding in 2005, the company has grown its sales staff from two to 141 employees. According to Black, Boundless’ revenues total $40 million.


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Jetline Announces South Carolina Expansion
Jetline (asi/63344) announced that it is relocating its print and warehousing operations to expanded facilities located in Gaffney, SC. The supplier’s executive offices and internal sales, marketing and certain back-office functions will remain at the current Mount Vernon, NY, location. The company’s new 147,000-square-foot manufacturing facility is located between Charlotte, NC, and Spartanburg, SC.

"It’s a very strategic location for us," Jetline President Eric Levin told Counselor in an exclusive interview. "We looked long and hard at other areas like Orlando and the Carolinas. This new location gives us the ability to ship to essentially half the country via standard two-day ground service."

Levin says Jetline plans to begin a phased relocation later this fall and anticipates completion of the expansion in South Carolina by the spring of 2010. The company is beginning the relocation with its bag business in mid-November, moving drinkware in mid-December and then relocating the remainder of its product lines during the beginning of 2010. "We’re buying some new machinery for the plant in South Carolina and we’re importing containers of inventory that are going directly there," Levin says. "The location gives us an inroads into the South and Midwest better than we were able to make in our current location."

In the move to South Carolina, Jetline expects to add more than 200 jobs to the local economy.


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Tony Robbins Named Keynote Speaker For ASI San Diego
The ASI Show announced this morning that Tony Robbins will be the keynote speaker at the new ASI San Diego show. The show will take place in the San Diego Convention Center, February 24-26 2010, and Robbins will speak on Friday, February 26.

"We are thrilled to have such a motivating business leader as our keynote speaker at The ASI Show in San Diego," said Timothy M. Andrews, president and CEO of ASI and president of The ASI Show. "I couldn’t think of a more appropriate speaker to help us kick off this new industry event serving the West Coast. Tony spoke at our Orlando show this year and had people on their feet, actually participating for most of the hour. I’m sure everyone will leave Tony’s presentation energized with new ideas for achieving business and personal success."

For 30 years, Tony Robbins has served as an advisor to leaders around the world. Beyond fathering the life coaching industry, Robbins is the owner of and helps run 11 companies. Robbins will be starring in a new reality show on NBC in 2010, where he will work with individuals giving them the tools they need to change their lives. He has also been honored by Accenture as one of the "Top 50 Business Intellectuals in the World." Seating for this keynote speech will be limited. ASI members should register for The ASI Show in San Diego at www.asishow.com by November 30 to be guaranteed a seat.

The ASI Show in San Diego will include an ASI Education day on Wednesday, February 24, followed by two exhibit days on Thursday, February 25, and Friday, February 26.


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Tuesday Morning Radio Show Live On The Air
Every Tuesday morning from 10:30am eastern time to 11:00am, a team of ASI editors debate the most important topics facing the industry. We also, of course, offer our own off-beat look at the market. This morning, we broke some big ASI Show news (hint: it’s about a well-known motivational speaker who happens to be extremely tall), talked about the market for small business loans, and shared the six vital components of a perfect elevator pitch. Plus, we even took questions from callers looking for advice on how to deal with difficult clients.  

If you missed the show, don’t worry. A recording is now available at www.asicentral.com/radio. And, don’t forget to join us next Tuesday, October 13, for our next broadcast. Log on to www.asicentral.com/radio at 10:30am eastern time and give us a call at 215-953-4979.


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SBA Gradually Backing More Loans
The U.S. Small Business Administration (SBA) approved nearly $2 billion in loans in September, but ended its fiscal year supporting only 50,000 loans, down 36% compared to 2008. Loan volume was especially low before the passing of the American Recovery and Reinvestment Act, which allowed the SBA to back $11.3 billion in lending, beginning in February. "These numbers, along with our conversations with lenders and small business owners around the country, show that the Recovery Act hit the mark," said SBA Administrator Karen Mills. "With half the nation’s workforce either working for or owning a small business, these dollars played a critical role in driving economic recovery across the country."

Clearly affected by a tight credit market, SBA lending declined sharply toward the end of 2008. For the seven weeks prior to the Recovery Act being signed, the SBA’s average weekly dollar volume was $165 million. Since, however, the average volume has climbed to $275 million weekly, spurred by additional loan guarantees. Overall, SBA approvals for the fiscal year amounted to a combined 50,829 loans worth $13 billion under its most popular programs. By comparison in 2008, the SBA approved 78,317 loans worth $18 billion. 

Earlier this year, in an attempt to unfreeze the secondary market, the government introduced a program called the Term Asset-Backed Securities Loan Facility, or TALF. Launched in March, TALF allowed secondary-market investors to take out loans from the government to start buying asset-backed securities, such as SBA loans. Analysts believe TALF has helped restore investor confidence, even though the program has not been tapped to the level SBA officials had hoped. Additionally, America’s Recovery Capital (ARC) loan program has drawn over 700 lenders since June, with the initiative increasing by an average of 50 lenders per week.

The SBA expects that many of the stimulus measures will remain in effect until September 2010, although some fear allocated funding may run out as soon as this coming December.

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The Joe Show: New Products For 2010
In this episode of The Joe Show, Counselor Managing Editor Joe Haley shows off some new items that are ready for prime time. Looking for hot new products to impress clients with as they plan their 2010 promotional programs? Check out this episode.

Click here to see this new products edition of The Joe Show.


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Noteworthy Acquires Krieger-Ragsdale’s Memo Book Division
Supplier firm Noteworthy (asi/74360) announced today that it has acquired the memo book division of former industry supplier Krieger-Ragsdale. Financial terms of the deal were not released. Krieger-Ragsdale filed for Chapter 11 bankruptcy in October 2008, and then proceeded to shut down its operations in April of this year.

"This is a bitter-sweet acquisition," said Carol Constantino, president of Noteworthy. "It is unfortunate to see a long term fixture in our industry succumb to bankruptcy, however, we recognized that the product line was a staple in our industry. These memo books are a natural extension to our paper products and enhance our notepad line."

Noteworthy says it expects a smooth transition and should be able to be taking orders for Krieger-Ragsdale memo books shortly. "The machine should be moved, up and running and ready to take orders within six weeks max," said Wayne Ballard, vice president of manufacturing. "We always get excited about new equipment and technology. We are all dedicated to providing top quality products and this will be another great addition to our lineup."

Noteworthy, which was formed in 1954, reported its 2008 North American ad specialty revenues as $32.3 million.


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Internet Ad Revenues Down Slightly
Internet advertising revenues totaled $10.9 billion for the first half of 2009, a 5.3% decline compared to the same period in 2008. The data, released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers, showed display ads and digital video represent the largest percentages of overall spending. "We are in one of the most difficult economic slumps in decades," said Randall Rothenberg, president of the IAB. "Interactive is one of the advertising sectors that has been least affected. As the economy improves, we’re confident that brands will devote an even greater share of their budgets to reaching consumers as they make interactive media a larger part of their lives."

In a positive trend, the report shows search revenues amounted to more than $5.1 billion through July, up slightly compared to 2008. Digital video also continues to grow rapidly, increasing by 38%. "While the overall advertising market has continued to be impacted by current economic conditions, marketers are allocating more of their dollars to digital media for its accountability and because consumers are spending more of their leisure time online," said David Silverman, PwC Assurance partner.

The report, compiled by the New Media Group of PricewaterhouseCoopers, includes data from Web sites, commercial online services, free e-mail providers and other companies selling online advertising. The complete report is issued twice yearly for full and half-year data.

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Outlook 2010: Free Webcast Tomorrow
Wondering how the market will fare next year and what strategies will be particularly successful? Counselor is hosting an educational webinar focused on the outlook for 2010. With a panel of experts, we’ll be discussing how industry companies can best prepare their businesses for next year, and we’ll identify some marketing and operations strategies that can help companies capitalize on an industry rebound.

The event is taking place online tomorrow at 2pm eastern time. Click here to register for this hour-long education session. See you there!

Plus, we’re hosting another webinar next week, October 14, focused on the most effective exhibitor strategies at trade shows. Click here for more information and to register for that event.


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NEW Course Available on ASI Education's OnlineLearning Center
Be sure to register at http://www.asicentral.com/asionlinelearning for some exciting new courses available exclusively to ASI members. Brought to you by ASI Education, Online Learning is the newest and most convenient way for distributors to get educated. Here are some of the courses from our New Distributor Success Track available now:

NEW
Managing Your Business.
You’re through that first phase of opening up shop and getting those first few deals under your belt. But are you prepared for growth? Are you ready to start hiring new people, making decisions on when to get an office outside of your basement and managing your cash flow when you’re overseeing multiple deals at any one time? Consider this course your operational guide. We’ll discuss staffing strategies, expense and investment policies, and how to build credit with suppliers. Register now at http://www.asicentral.com/asionlinelearning.

Course Track: New Distributor Success

  • Nailing Down the Basics
  • Marketing Your New Business
  • Steps to Selling Success
  • Creative Case Studies
  • Avoid These First-Year Pitfalls
  • Coming Soon: Wearables Crash Course

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ASICentral: New Poll Question
What’s your outlook for the rest of this year? Let us know now! With our new poll question, we want to know how you expect your 4th quarter 2009 revenues to compare with 4th quarter 2008. Click here to take the poll now.

Got questions, comments or any type of feedback regarding anything ASICentral, don't hesitate to contact us at feedback@asicentral.com. Also, follow ASICentral at:Twitter Facebook YouTube.


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In The News
Hub Pen Company (asi/61966) and Walker-Clay (asi/354530) participated in the 9th annual Thompson Island 4k Trail Run to benefit the Outward Bound Education Center. Runners from both companies formed a team called "Write Stuff."

Otto International, Inc. (asi/75350) has introduced a new line of apparel, available at: www.ottoactivewear.com.

SanMar (asi/84863) recently welcomed over 500 guests to an open house at its new 585,000 square foot warehouse in Dallas.

Spector & Co. (asi/88660) has launched a new Web site found at: www.spectorandco.com.

The Michigan Promotional Professionals Association has inducted Howard J. Steinmetz, Alvin H. Ellwood, Sr. and Kenneth R. Kelsey in its newly-formed Hall of Fame. The organization also honored Matthew Rosenbaum of Leed’s (asi/66887) with the first annual 2009 Great Lakes Supplier Rep award.

The Promotional Products Association of the Midwest held its annual PPAM Holiday Showcase in Overland Park, KS, on September 16 and 17. More than 500 distributors attended the event.

WorkflowOne (asi/333647) has been awarded three multi-site, chain of custody environmental certifications, including one from the Forest Stewardship Council.


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People On The Move
AnaJet Inc. (asi/16000) has named Franz Bosshard its new president.

Charles River Apparel (asi/44620) has hired Tom Schlegel to represent its offerings in NJ.

J. Charles Crystalworks (asi/62985), Quarry International (asi/80202) and Etching Wines & Spirits (asi/52775) have announced the addition of the following sales representatives: Christian Brown, CB Marketing (Northwest); John Bugele, Richard Schmidt, Keith Schroepfer, and Cory Schroepfer, Bridge Marketing Services (Midwest); Bill McDonald and Gary McMillan, McDonald Marketing (Southeast); Kim Reinecker, KAR Creative Group (Southwest); Jeff & Shelley Stevens, Larry Willis, and Mark Fulwider, WesCo Marketing (West). 

Liqui-Mark Corp. (asi/67675) has announced the following realignment among its regional sales reps: Daniel Sachs & Darren Cook, West Coast Branded Solutions (West Coast); Wayne Burden & Roberta Reiss, Northeast Marketing (Northeast); Kim Reinecker, KAR Creative Group (Mid-South); Doug Mercer, Bryan Mercer & John Rodriguez, Mercer Enterprises (Midwest); Jamie Hudson, Hudson Marketing Group (Southeast).

Showdown Displays (asi/87188) has added Darryl Holleman as director of business development.

Spector & Co. (asi/88660) has announced the following appointments: Tina Bacogiannis to the newly-created position of director of business development; Jennifer Lebricon to the position of customer service manager for North America; LeAnn Rankin to the position of key accounts manager.

Sweda (asi/90305) has hired Bruce Curry to provide sales representation in ME, NH, VT, MA, RI, CT and upstate NY.


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ASI SHOW

The following are the dates and locations for The ASI Show in 2010:
Orlando: January 3-5
Dallas: February 1-3
San Diego: February 24-26
New York: May 4-6
Chicago: July 13-15
Holiday & Incentives Expo, Las Vegas: September 14-16

Plus, don’t miss the ASI Advantages Roadshow, the industry’s #1 traveling show. Visit www.advantagesroadshow.com for the complete schedule!



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